Yeni Safak – Turkey’s multibillion-dollar urban transformation project, which sees the demolishing and renewing of millions of buildings deemed to be unsafe in the country’s earthquake-prone provinces, is gathering investor interest on a global scale, the President of the Investment Support and Promotion Agency of Turkey (ISPAT) and the Vice-President of World Association of Investment Promotion Agencies (WAIPA), Ilker Ayci, has said at a meeting with the Turkish press.

Estimated to create a market of about USD 500 billion in volume within the next decade, Turkey’s urban transformation is the center of attention for the world’s leading construction companies, Ayci said, adding that the Agency was getting increasing numbers of enquiries from foreign builders seeking cooperation with Turkey’s Housing Development Administration (TOKI) and its subsidiary Emlak Konut, a real estate investment trust. Drawing attention to the size of the urban renewal project, Ayci said that construction machinery manufacturers were also likely to invest in the country in the near future.

Providing insights on foreign direct investment (FDI) into Turkey in 2013, ISPAT head pointed at the new entries in the country’s finance sector, namely the Bank of Tokyo-Mitsubishi UFJ (BTMU), which was granted a Turkish banking license late last year. New foreign entrants are also expected in Turkey’s insurance industry, Ayci remarked. Turkey is also in investor scope for its shale gas potential, as newly found evidence indicates large reserves of the unconventional fossil fuel in the provinces of Konya, Ankara and Kirsehir. Royal Dutch Shell is actively exploring for shale gas in Diyarbakir province.

“On constant duty all over the world to promote Turkey’s investment environment, ISPAT staff present specific projects in the country’s hottest sectors tailored to the best interests of potential investors..” ISPAT President said as he explained the Agency’s methods for attracting FDI. Turkey left behind its regional competitors such as Poland, Czech Republic and Romania in FDI inflows in 2012, Ayci continued, stating that ISPAT would play an active role in Turkey’s privatization program, particularly in the upcoming tenders of the country’s energy industry.

Turkey plans to privatize its remaining state-owned power generation and distribution companies in 2013.